- For the second straight year, Atlanta’s industrial market absorbed over 20 million square feet of space. This amount is also the second highest total in the nation in 2018.
- While South Atlanta continued to dominate the market, accounting for half of the net absorption total in 2018, Northeast Atlanta and I-20 West/Fulton Industrial each posted strong occupancy gains as well this year.
- There were fewer deliveries than expected in the fourth quarter which led to a 20 basis point (0.2%) drop in Atlanta’s overall industrial vacancy rate. Year-over-year, demand outpaced new supply and the market vacancy decreased 50 basis points (0.5%).
- Speaking of new space delivered, Atlanta’s inventory grew by a total of just under 19 million square feet this year. This amount was the third highest in the country in 2018.
- Atlanta’s average industrial rent finished the year 8.7% higher than 2017. This is the largest annual increase ever recorded in the market’s history.
- Though industrial activity in Atlanta is expected to remain solid in the coming year, it is unlikely to reach the 20 million square feet mark for a third consecutive time.
Atlanta Industrial Market
Following 2017’s record level of absorption, Atlanta’s industrial market saw occupancy gains total 5.8 million square feet in the fourth quarter which resulted in the market absorbing a total of just under 21 million square feet in 2018. This is the second year in a row the annual total has surpassed the 20 million square foot mark. The amount is also the second highest in the nation according to data compiled by Colliers International. The activity this year was somewhat split between two tiers of industrial tenants: the million-square-footers and the “bread-and-butter” tenants (less than 500K).